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The Williams Companies, Inc. WMB recently signed an upstream joint venture with Crowheart Energy in Wyoming's Wamsutter Field in the Greater Green River Basin. The strategic initiatives of Williams to integrate the Wamsutter Field deposits will increase the worth of its midstream and downstream natural gas and NGL infrastructure.
The deal combines the historic upstream assets of BP p.l.c. BP, Southland Royalty Co. LLC and Crowheart into a single unified footprint offering operational cost reductions and synergies while unleashing substantial long lateral development inventory. More than 1.2 million net acres, approximately 3,500 operational wells and above 3,000 prospective development areas make up the three legacy operating properties.
Crowheart will be the operator of the combined entities' upstream position while Williams will continue to manage and own all its midstream assets under this joint venture. The company's real estate, surface and other rights will be intact, thus allowing it to expand its midstream and renewable energy prospects in Wyoming.
Chad Zamarin, Williams’ senior vice president of Corporate Strategic Development stated, “We are excited to enter into this joint venture with a strong and well-capitalized operator with an ownership structure that will reduce costs, stimulate development activity, drive volumes and position our midstream and downstream assets for growth.”
He went on to add that this joint venture represents the culmination of Williams' Wamsutter Field consolidation initiatives. The company provides the upstream platform with an experienced in-basin operator that is committed to optimizing and expanding the combined assets with Crowheart as its operational partner.
Recently, Williams concluded the acquisition of Southern Company's SO wholesale gas trading business comprising Sequent Energy Management, L.P. and Sequent Energy Canada, Corp.
The deal announced in May expands Williams' natural gas pipeline marketing presence to above 8 billion cubic feet per day (Bcf/d) with extensions into new markets to access incremental gas-fired power production, liquefied natural gas (LNG) exports and potential renewable natural gas (RNG) plus other developing possibilities.
Founded in 1908, Oklahoma-based Williams is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing and transporting natural gas and natural gas liquids. Possessing a widespread pipeline system, which is extended to more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
Zacks Rank & Key Pick
Williams currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the energy space is Oasis Petroleum Inc. OAS, presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Southern Company The (SO) : Free Stock Analysis Report
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